Is it possible to obtain finance from overseas? With the U.S, Asia etc having such low rates is it possible to take advantage of this against property held in Oz?
Lenders usually want property secured against the loan to be in the country the loan is in. ( try checking with Citibank )
This means you could in theory borrow money in say the USA if the property is secured in the USA and then pay for a property in another country if you had enough equity. Then the money needs to be converted to Aussie dollars and there is a cost to do this.
Also the rates seem low but you have to consider the foreign exchange rate movements that might occur in the future.
There is a risk factor of foreign exchange rates moving against the Aus dollar. This means you could be paying more in $AUD for a loan in say USD or YEN.
There is an interesting financial instrument called an interest Rate swap
see
http://www.investopedia.com/terms/i/interestrateswap.asp
http://www.stgeorge.com.au/corporate/transaction/int_rate_rm/swap.asp?orc=institution
http://www.anz.com/edna/dictionary.asp?action=content&content=interest-rate_swap
http://www.banksa.com.au/corporate/transaction/int_rate_rm/option.asp?orc=institution
https://acleareducation.sfe.com.au/aclear/irswaps.htmThese web sites above are merely for education purposes so you can get some understanding of the interest rate swap instrument that you may wish to seek further information about from an adviser.
I know of the situation in Japan, and if you are working there, earning yen you can get loans for Aussie property in Yen at rates around 2%pa. But you must refinance if you were to leave the country. Don't know about other countries.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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